in schools, they released an iphone app. >> not surprising. stuart: you know, there's one more addition to this gun story and charles payne has it. charles: i wish it wasn't just a gun story because it is a violence epidemic. last week chicago three rappers were murdered, three. i don't know where president obama is on this. you know, there's something else going on here. when a kid gets off a bus and he's got on the wrong shirt and he's murdered by another kid, this, you know, it is not about the guns. it is about what causes a one human being 17 years old to kill another one and why no one ever talks about it, because it's politically incorrect? stuart: that violence you are talking about, that's simply not part of this gun debate. charles: it's a shame. stuart: never mentioned. i'm sorry we're out of time everybody. but charles and liz, thanks for joining us.

dagen and connell it is yours. dagen: thank you very much. will that topic come up this hour because the president is set to speak at the white house? maybe he will hit republicans over the head with his reasons for raising our borrowing limit in this country. connell: that's expected to be the main focus. we will see. we have other big stories today, including apple. stocks on sale getting hammered on word the company is ordering fewer iphone parts, not enough demand apparently for the iphone. dagen: let's look at that stock among others. nicole petallides is on the floor at the new york stock exchange with more on apple's stock. nicole? nicole: we're keeping a close eye on apple, which today broke down below $500 for the first time in 11 months. this dates back to last february where it was below $500. here it is, though. it has recouped some of the losses. it is now at 506.80. you talked about the fact that they had to cut their orders for screens and components and such for the iphone 5. ultimately it is because they are not seeing the demand.

they are not boosting their orders, on the contrary, cutting the orders. this was a stock that was 700 bucks back in september. here it is now selling off about 2 1/2% on this news. i can tell you one of the traders are saying buy it at 495 over at gray wolf this morning. it did trade as low as 498 and change. dagen: thank you. connell: shares of apple are certainly taking a beating today. and shibani joshi joins us now with more. shibani: nicole was just pointing out shares of apple down about 2.6%. but not taking the beating that you would expect on the news of the "wall street journal" reporting that the company is ordering fewer supplies and parts for the iphone 5. apparently the company cutting its order for components due to weaker than expected demand. it is a move that comes as the company faces greater challenges. according to the "wall street journal," from big competitors, like samsung, as well as google android operating system phones out there. also research in motion coming out with the phone very soon.

and the windows smart phone out. shares below. well they fell as low as 498 bucks at the open. but they are seeing some stabilization. one of the things i want to point out, the reason we may not be seeing a bigger dip than expected, ubs just issuing a report just moments ago to its clients saying that most of this information has already been baked into the numbers, saying this is quote unquote old news to some extent. back in december, ubs and a bunch of street estimates had revised, lowered their iphone estimates. this company by 5 million units due to the 30% production cut already being reported in asia. the company reporting sales of 45 million iphones for the december quarter, issuing a report today saying hold fast, hold steady, they are not changing their reports, expecting the december quarter to be strong and the march quarter to be weak. the stock according to ubs, quote, appears to be in a battle between peak growth and margins and a low valuation.

the company still expects a strong earnings report, seeing limited down side and still maintains its $700 price target on the shares. again, that may be the reason we're seeing a little bit of a dip, but not a much bigger reaction on wall street today. most of the street sort of folding that in already. according to ubs. guys? connell: thanks. let's go to a chief investment strategist at raymond james who is with us now from st. petersburg florida. one of the things if you look at the stock chart, is that over and over here it continues to find support around the $500 level. it is at 506 and change today. what do you make of that? >> i think you do have support levels in between 450 and 500 bucks on the shares. i mean, what's happening, i think shibani had it right, it's no real surprise. we downgraded -- i spoke to my analyst this morning, we downgraded apple in jjly of last year from a strong buy to an outperform because you were

getting slowing growth, and you basically gone from a hypergrowth company to a more of just -- i don't want to say moderate growth because 20 to 25 percent growth is still pretty strong. but if you look at the tech sector in aggregate, they always tend to overorder parts going into a new product launch and then throttle back after the product launch. so travis doesn't think there's a whole lot of dire situations here and we still maintain our outperform and earnings estimates. connell: at this level -- you could have a choice to make, the all-time high in apple is $705.07 on the 21st of september. so it's 50% retracement from that. brings us to basically where we are now, be exactly 507. what do you do? is that an opportunity to sell at this level? or is now the time to get back in would you tell investors on the apple stock? >> well, as i said, our analysts has an outperform rating on it, and from a technical analyst standpoint, a 50% correction usually finds some kind of

technical support, slightly underneath 500. so from a short-term to intermediate-term basis, i concur with our analyst and with the outperform rating. connell: big picture some people look at it and say that's odd all we hear about demand, everybody wants an iphone, so just to see the headline, does this say anything at all to you about the global economy or is it just a sign that apple is maybe a little different than it was a few years ago? >> i think that's exactly right. i think it is a more mature growth company instead of a hyper growth company. they still have 120 billion dollars on the balance sheet and growing that by about 40 billion dollars plus a year. the down side should be somewhat muted below $500. connell: don't go crazy says jeff saut on the apple stock price today. you have calmed us all down. good to talk to you. thanks a lot. >> it is a pleasure. dagen: about half -- about 25 minutes away from president obama give or take. it could give or take half hour

really, holding his first press conference of the new year. why now? joining us now is an editor at forbes. that's always the critical question, if you're a journalist, it is not who what when where why but why now? what say you? >> i think he's trying to basically beat the republicans to the punch to roll out a lot of platitudes about how both sides need to come together, that he's going to lead this -- them coming together to keep the federal government open, so that social security checks are mailed, basically it is a load of nonsense. you do not need to increase the debt ceiling to keep the federal government running. basically what would happen if they did not increase it is a washington that's never in history prioritized spending would be forced to do just that. social security checks would go out. the military would be funded. but maybe we would abolish some programs finally. so i think he's just trying to get ahead of the republicans. dagen: now, if it was going to

be a pronouncement of platitude, though, john, he wouldn't hold a press conference, he would just come out and make some statement. but he has to face the media, and he will have to face tough questions about this. but that's not really in the cards, is it? is this a tactic that the republicans will use saying we don't need to raise the debt ceiling, but at the end of the day, spending is not going to get cut, not in the way it would have to. >> i think you're right. we're never going to see the spending get cut. because i don't think either party wants to cut spending that they regularly talk about and obama talked about cutting spending line by line. republicans talked about small government. but every year we look back and we say oh wow it's grown even more. i think there's going to be a lot of back and forth. it strikes me that that's obama's plan that he wants to get ahead of it, but the reality is neither party is going to do anything. that to me is the big scandal here. we're a constitutionally limited government yet it collects 2.5 trillion dollars a year. it strikes me that that's the

scandal that not enough people are talking about, a limited government wouldn't need that much money. dagen: how do you think the debt ceiling fight does play out, however? again, if you have people who have nothing to lose, then they become very dangerous, if they're willing to put their necks on the line for this kind of fight, because there's this one and then the sequester and then the budget and then we roll on. >> i think we're going to see it play out the way we did the last time. a lot of drama. washington loves drama because then the attention goes to the politicians. that's what they like. we will see it. we're going to get close to the debt ceiling and oh wow we're going to default, and lots of things like that, but eventually they will agree to some sort of increase in debt ceiling maxed by spending cuts in the future, those spending cuts will never occur, they never do, and a year from now we will be having the same discussion saying okay we need to increase the debt ceiling again, and they will talk about spending cuts again, but we know that future congresses are never constrained by deals made in the past.

i don't see why this time will be different. it's just going to make the electorate even more skeptical about washington, i think is the end result here. dagen: they're past skepticism. they are back to down right angry in many corners of this country. john, good to see you, never angry. >> thank you. connell: we're waiting here for the president on why congress should raise the debt ceiling as you guys were talking about. but there will be other topics as well. full news conference from the white house we will have it for you as soon as the president is ready to go. dagen: and coca-cola forking over some big ad dollars to finally address the take on obesity. is coke the problem? you might think again. take a look at the oil market and see how oil is trading up today. the market is up a little bit. oil is essentially flat line.

connell: who needs retirement? look at these figures that have come in on the number of americans age 75 and up that are still in the workforce. increased by nearly 77% in the last 20 years and they are not just sticking around because they need the extra money. many older americans continue working because they simply love what they do. 25% of the older age bracket holds professional occupations, doctors, lawyers etc. according to to the aarp public policy institute, like what they do, want to keep working. biggest makers of swiss watches agrees to buy a jewelry unit, which will help swatch compete in the market for high end jewelry and watches decorated in precious stones. the two companies also consider creating a diamond polishing

joint venture. there you have it. you love cars and watches. dagen: that was my high school graduation gift. i wore the same watch for a number of years. connell: really? dagen: i'm not going to tell you how long. connell: wow. you graj rated -- you just graduated high school a few years ago. dagen: sure did. nicole, investors are waiting to hear what president has to say at the news conference. nicole: that's right. we're seeing retailers and drugs doing well today. the vix slightly higher. the nasdaq and s&p are pulling back. apple has been weighing on the nasdaq. as far as the dow jones industrials some names that are doing well includes hewlett-packard, boeing, cisco, dupont. i wanted to take a look at cisco in particular which is up 1 1/2%. it is the number two best performer on the dow. getting upgraded to an outperform, both at rw baird and

also at william blair -- william blair. back to you. dagen: thank you. waiting on the president and a white house news conference should start happening in less than 15 minutes. the president expected to tell us why congress needs to raise the debt ceiling. connell: we will have it for you as soon as it starts. that and much more still to come. here's a look at world currencies on markets and how everybody is faring against the dollar. >> announcer: you never know when, but thieves can steal your identity and turn your life upside down. >> hi. >> hi. you know, i can save you 15% today if you open up a charge card account with us. >> you just read my mind.

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dagen: breaking news, a little more than ten minutes away from a presidential news conference coming to you live from the white house. president obama's focus will surely be on the need to raise the debt ceiling and he will dig into the fight that could be in store for the president, and the democrats, and the republicans. connell: we have something pretty good here to hold you over before that. good news for the investors in the ford motor company, that stock hitting 52 week high last week and now alan mulally the ceo is looking to shift focus to the luxury lincoln brand with a whole new vehicle. dagen: our jeff flock is live from the north american auto show in detroit with more.

hey, jeff. jeff: uncharacteristically sitting down with alan mulally. he's taken a moment to just catch his breath after six years -- how many years has it been? >> six years now, absolutely. jeff: six years. you know, i will tell you, when you started, showed up with, you know, a sport coat, you know, white shirt, gray slacks, blue blazer, take a look. can you see what he's wearing? let's take a look. show me what you got on. >> another interview by fox. jeff: hey now this is the way we soften up and ask you about the debt ceiling. >> somebody suggested in my conservative attire i might want to wear a couple of snazzy socks so -- jeff: nicely done. we're waiting for the president to come out with a press conference talk about debt ceiling and all this. are you sick of all this

foolishness in washington or what? >> you know, jeff, on one hand, i'd like it to get resolved faster, you know, rather than later. on the other hand, i'm just so pleased that the debate has moved into the bigger issue and that is how are we going to live within our means, how are we going to bring down the debt and the budget deficit, what are we going to do about the trade deficit so we can create an economy again that's growing for the good of all. that's the most important thing i think is -- i think is happening. i think it's just so important that we move to a comprehensive strategy to enable economic development in the united states. that's the most important thing we do for all of us. jeff: if you were asked, would you work in if obama administration? -- in the obama administration? >> i've been very pleased to support the administration, this administration and the previous one because that public private partnership especially for manufacturing in the united states and especially with the trade rules around the world,

i've been pleased to be asked and listened to. jeff: i mean a real job? >> i think the best thing i can do and feel really good about it is serving forward. jeff: your work is done. you have done it. >> no, we're just getting started. it is an important part of the united states economy. nearly 15% of our gdp. research and development in the united states is associated with manufacturing. i'm very pleased to serve it. >> it really feels great. clearly one of the things i have focused on is further developing the entire team, of ford worldwide and i'm so pleased with asking mark to be the chief operating officer also joe hendricks has come back from asia pacifics to take over

americas. we have dave shock who is a fantastic operator in asia pacific now. maybe the biggest one is jim farley who really knows luxury is not only leading sales market and service worldwide but also lincoln. jeff: are you paying him more now that you make him do double work? >> i think he feels fully appreciated. we appreciate him. this idea of not only developing the team members individually but also as a team is going to serve ford very well. jeff: the dividend you just doubled it. a lot of the ford family like that. so do all stockholders. >> it's a good point about the ford plan. we also shared with everybody that we were going to reinstate a dividend and our plan was we would be able to continue that dividend even during a recession because that consistency had purpose, that clarity was really good. not only did we reinstate it last year but we announced we will be doubling it. it shows you how we feel about our ability to generate free

cash flow and grow the business over the long-term. jeff: i was going to say, some people would question is that a good way to spend your money? you feel like you have enough money to spend on new product as well? >> absolutely. part of the capital allocation process is, number one funding the product development around the world, also profitable growth for everyone, including the shareholders. we looked at our liquidity and debt, all the progress we made bringing down our debt, and we think this is a good time to increase the dividend. >> who is in charge of ford, by the way? >> well, i think it starts with the board of directors and bill ford with his able assistant alan. >> you said you will be there at least through 2014? >> i did, and i think that's a really good guidance. we still believe in that because we want to further develop the team, further develop the strategy of having this balanced portfolio of serving all the markets around the world as well as a world class full family of vehicles. in a way we're really picking up the pace of implementing our one

ford plan. jeff: i can't wait till the next time we talk and i see what you're wearing on your feet. >> this might be a one-shot deal. this is a big change for me. jeff: a lot of big changes at ford, and there's the man, alan mulally, always great to see you. thank you very much. >> you too. jeff: now to the president perhaps now that we've met the next member of his cabinet? connell: that's pretty good jeff. dagen: jeff, thank you. connell: the president is expected to speak at the white house in a few minutes. he's expected to at least start with why he thinks the debt ceiling should be raised, but that's not it, not by any means. the questions could be anything which means anything could happen. keep it here. dagen: this flu epidemic raging on. now we have reports about shortages in the flu vaccine. that would be a loser if you can't get one and want one. but let's look at some winners, make everybody feel better, here on the s&p.

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connell: market now. let's go back to nicole petallides. nicole: i am taking a look at the markets. we have that back and forth action. we have seen a lot of stocks here. you see names like hewlett-packard, cisco and boeing. i also wanted to bring you over to the post of ups today. it is up 1.8% for ups. their company has a $55 million

deal. regulators are not too hot on this deal. connell: thank you. connell: rich edson standing by. he is standing outside of the white house. rich: the administration's position is they will not negotiate with republicans in congress. they just want congress to increase the debt ceiling. we got a knock down from the treasury department that the treasury can print a $1 million

coin to get out of this. there was a statement from jay carney who says there are only two options to deal with the debt limit. congress can pay its bills or fail to act and put the nation into the fall. it will not necessarily be a default if we pay our creditors. if we get beyond that that feeling, sometime in mid-february range, if we get there, how does the administration prioritize its payments. republicans, however, they will discuss their strategy on how exactly to pay this debt ceiling

pipe. connell: thank you very much. the news conference a few minutes away. dagen: let's bring in political analyst doug shoen. he is a fox news contributor. first up, how ugly will this fight the? >> i think it will be very ugly. president obama is locked into a position that he is not negotiating and the debt ceiling may go out. i think we are set. connell: dagen mentioned the former president bill clinton.

if he were an office, he would bring you and. if he had this position and he said he will not negotiate, what would you tell him? >> i would say the american people want more. it is right that if we defaulted and i hope that does not happen, the republicans would be blamed. the president's approach is much more conciliatory than this process. dagen: if the democrats are winning every battle, why on the flip side, are losing everyone? how do they find some middle ground? >> first, the republican party it self is deeply divided. [ laughter ] we heard from: powell yesterday

and even if that may be an overstatement, it certainly reflects the view of someone who is a preeminent republican. connell: the last time, we could afford to go over the cliff if we had to, it would not have been the end of time. you are playing with fire. >> you sure are. that is what the president will use and hold over the republicans. that they are playing with fire. the president is, unfortunately, in my view, not willing to negotiate. the republicans do not seem too willing to negotiate either. we are heading and eight

calamitous direction. dagen: and the democrats know that when you start missing things -- again, when matt went away, people are outraged that their checks are slightly lower. what about this a question or. >> there has been no question since the beginning of the year about what we would do about the cuts of the soquel sure. it is a very, very difficult

fight. worse than the fight over the fiscal cliff. bottom line, i do not see a solution. connell: we are getting closer to the president. doug, thank you very much. we have gotten the official two-minute warning. he will start with debt ceiling. what you think the other big topics will be? >> there will be immigration. and there will be guns. one big bill. i think you will see a lot done to about five and executive order. also the assault weapons. i think they will try to do a lot of it as aggressively as

they can. i do not think this administration will back off something that is very popular with the american people in the wake of the tragedy of newtown. dagen: anything on mental health? >> we should. dagen: that seems to be middle ground. >> yes. hopefully the vice president will talk about that as well. connell: i would think we have less than a minute now. rich: i think you hear about the gun control debate. they are meeting with house democrats today to get the final thoughts and assemble and put this together. you can really talk about

anything here. the debt ceiling is something that he will lead with. you should expect to hear a number of different issues. gun control will be one of them. fiscal issues did not know away. i think that and deficits will be a major part of what you hear from the president. connell: dagen had a good question earlier, why a formal news conference now? >> i think he is trying to put maximum pressure on the republicans to negotiate. i think the republicans are in disarray. when your opponent is weak, go for the kill. dagen: third-graders compromise would be on guns.

we want to introduce the president of the united states. >> good morning. i thought it would make sense to take some questions this week as my first term comes to an end. it has been a busy and productive for years. i expect that same thing for the next four years. right now, our economy is growing and our businesses are creating jobs. we are poised for a good year, if we make smart decisions and sound investments. as long as washington politics do not get in the way of america's progress. as i said on the campaign, one component to growing our economy

is shrinking our deficit and a balanced and responsible way. i have been fighting for such a plan. one that would reduce our deficit by $4 trillion over the next decade. that would be enough to not only stop the growth of our debt, but it would make it manageable. step-by-step, we have made progress towards that goal. over the past two years i have signed into law about $1.4 trillion into spending cuts. two weeks ago i signed a law of more than $630 into new revenue.

when you add the money that will save in interest payments, altogether, that adds up to a total of about $2.5 trillion in deficit reduction over the past two years. not counting the $400 billion rd saved from winding down the wars in iraq and afghanistan. we have made progress. we are moving towards our ultimate goal of getting to a $4 trillion reduction. there will be a war deficit reduction when congress decides what to do about the $1.2 trillion automatic spending cuts that have been pushed off until next month. the fact is, though, we cannot finish the job of deficit reduction or spending cuts alone. the cuts we have our demate to parties other than medicare, renegade, social security and defense, mean that we spend on anything from defense to public

safety less as a share of our economy then has been true for a generation. that is not a recipe for growth. we have to do more to stabilize our finances, but also spur more growth in the short term. i am open to making modest adjustments to programs like medicare for future generations. i have also said that we need more revenue through tax reform by closing loopholes and our tax code for the wealthiest americans. if we combine a balanced package of savings from spending on healthcare and revenues from closing loopholes, we can solve the deficit issue without sacrificing our investment in things like education that will help us grow. it turns out the american people agree with me. they listened to an entire years debate over this. they made a clear decision about

the approach. they do not think it is smart to have tax breaks for the wealthiest americans. they want us to get our books and order in a balanced way where everybody pulls their weight, everyone does their part. we can get it done, but we will have to make sure that people are looking at this in a responsible way rather than just through the lines of politics.

something most americans had not even heard of before two years ago. i want to be clear about this. the debt ceiling is not a question of authorizing more spending. raising the debt ceiling is not authorized or spending. it allows the country to make spending that congress has already committed to. these are bills that have already been racked up. if congressional republicans refuse to pay america's bills on time, social securities and benefits will be delayed.

we may not be able to pay our troops or honor our contracts with small business owners. investors around the world will ask if the united states of america is in fact a safe bet. markets could go haywire, interest rates would spike for anyone who borrows money. any homeowner with their mortgage, any student with a college loan, any business owner. it would be a self-inflicted wound on the economy. it would slow down our growth. ironically, we would probably increase our deficit. to even entertain the idea of this happening, united states of america not paying its bills is he responsible.

we have to pay our bills. they can act irresponsibility and for america through another economic crisis. they will not collect a ransom in exchange for not collecting the american economy. the financial well-being is not leverage to be used. they better choose quickly because time is running short. the last time congress even flirted with this idea our credit was downgraded for the first time in history. ironically, it added to the

deficit. it should not be surprising given all this talk that the american people think washington is hurting rather than helping the country at the moment. they overwhelmingly want us to create more jobs. let's finish this debate. the certainty that our economy and reputation are still second to none. america has a lot to do. we have to boost the wages of those who have -- we have to give our children the best education possible and we have to do everything we can to protect them from gun violence. let me say i am grateful to vice

president biden for his work on this issue of gun violence and for his proposals which i will be reviewing today and i will address the next few days. i intend to vigorously pursue. with that, i will take some questions and i will start with julie of a piece and i want to congratulate julie for this new and important job. >> i wanted to ask about gun violence. today marks the one-month anniversary of the shooting in newtown which seem to push the assault weapon ban. even harry reid has said he questioned whether it could pass congress. how hard will you push for an assault weapons ban and if one cannot pass congress, what other measures would be included? >> as i said, the vice president

and members of cabinet went through hedgers in the last month, meeting with stakeholders and the nra. listed to proposals from all quarters and they presented me with a list of sensible comments and staff second be taken to make sure that that kind of violence we saw in newtown does not happen again. i expect to have a fuller presentation later in the week. that will give people some specifics about what i think we need to do. my starting point is not to worry about the politics. my starting point is to focus on what makes sense. what works. what should we be doing to make sure that our children are safe. i think we can do that in a sensible way that comports with

the second amendment and then members of congress, i think, will have to have a debate and examine their own conscious. if, in fact, and i believe this is true, everybody across party lines is deeply moved and saddened as i was by what happened in newtown. we will have to vote based on what we think is best. what you can count on is the things that i have said in the past we will do a much better job of keeping needs magazine clips with high capacity out of the hands of folks that should not have them. assault weapons and as

meaningful. those are things that i continue to believe make sense. will all of them get through congress, i do not know. what is uppermost in my mind is making sure that i am honest with the american people and what i think will work. what i think is something that will make a difference and to repeat what i said earlier, if there is a step that we can take that will save even one child from what happened in newtown, we should take that step. i will present the details later in the week. >> as you know, harry reid sent you a letter begging you, essentially, to take some sort of executive action on this debt

ceiling issue. i know you said you are not to go shooting on it. your administration has rolled out any ideas. sometimes it is what it takes. you brought up that animation proclamation. are you considering a plan b? and if not -- >> well, chuck, the issue here is whether or not america pays its bills. there is a very simple solution to this. if the house and senate want to give me the authority so that

they do not have to take these tough votes, i would be happy to take it. mitch mcconnell, the republican leader in the senate had a proposal like that last year. i am happy to accept it. if they want to keep this responsibility, then they need to go ahead and get it done. there are no magic tricks here. there are no loopholes. there are no easy outs. this is a matter of congress authorizes spending. they ordered me to spend. they tell me you need to fund our defense department at such and such a level. you need to send out social security checks. you need to make sure that you are paying to care for our veterans. they lay all of this out for me.

i am required by law to go ahead and pay these bills. separately, they also have to authorize raising the debt ceiling to make sure that those bills are paid. while congress can do is tell me to spend x and then say, but we are not going to give you the authority to go ahead and pay the bills. i just want to repeat, because i think sometimes the american people understandably are not following all the debates here in washington. raising the debt ceiling does not authorize us to spend more. all it does is say that america will pay its bills. we are not a that deep nation. the consequences of us not paying our bills, as i outlined in my opening statement, would

be disastrous. i understand the impulse to try to get around this in a simple way. there is one way to get around this. it is for congress to authorize me to pay for those items of spending that they have already authorized. the notion that republicans would suggest that in order for us to get our way on our spending priorities, that we would risk the full faith and credit of the united states, that's, i think, is not what the founders intended but that is not how our democracy should

work. they need to sit down and work out a compromise. [inaudible question] >> there is a pretty straightforward way of doing this. we pay our bills. and then we have a vigorous debate about how we will do further deficit reduction in a balanced way. keep in mind, what we have heard from some republicans in both the house and senate is that they will only increase the debt ceiling by the amount of

spending cuts that they are able to push through. they would have to approve 2.5 million in cuts just to -- 2.5 trillion. the same republicans say they do not want to cut defense. they claim they do not want to gut medicare or harm the vulnerable. the truth is, you cannot meet their own criteria without drastically cutting medicare. or having an impact on medicaid

or affecting our defense spending. the math just does not add up. here is what would work. what would work is for us to say we have already done close to $2 trillion in deficit reduction and if you add the interest that we will not be paying because of less spending and increased revenue, it adds up to about $2.5 trillion. the consensus is we need about $4 trillion to stabilize our debt and deficit. the package i introduced to speaker boehner before the new year would achieve that. we were actually fairly close in terms of arriving at that number. if the goal is to make sure that we are being responsible about our debt and deficit, if that is a conversation we are having, i am happy to have that

conversation. by closing some additional loopholes and tax reform, which speaker boehner has acknowledged it can raise money in a simple way. it includes making sure that we are reducing our healthcare spending. the threat that unless we get our way, unless you got medicare or medicaid, or otherwise / things that the american people do not believe should be slashed, that we will threaten to wreck the entire economy. that is not how historically this has been done. that is not how we will do it

this time. chuck, what i am saying to you, there is no simpler solution, no ready credible solution other than congress either give me the authority to raise the debt ceiling or exercise the responsibilities that they have kept for themselves and raise the debt ceiling. this is about paying your bills. everybody here understands it. this is not a cobbler clay -- this is not a complicated measure. you do not go out to dinner and eat all you want and then leave without paying the check. if you do, you are breaking the law. congress should think about it the same way that the american people do. if congress wants to have a debate about maybe we should not

go out to dinner next time, maybe we should go to a more modest restaurant, that is fine. that is a debate that we should have. in order for me to control my appetite, i am going to not pay the people who already provided me services. people who already lent me the money. that is not showing any discipline. all that is doing is not meeting your obligations. you cannot do that. that is not a credible way to run this government. we have to stop lurching from crisis to crisis to crisis when there is a clear path ahead of us that simply requires discipline, responsibility and compromise. that is where we need to go. that is how this needs to work. >> thank you, mr. president.

as you well know, sir, finding both for the debt ceiling can be difficult. in previous aspects of american history, president reagan, president clinton, they all signed reduction deals that were contingent upon or in the context of raising the debt ceiling. you yourself has done that. we are curious about this new adamant design on your part not to negotiate. doesn't that suggest that we will go into a default situation because no one is talking to each other about how to resolve this? >> no. i think if you look at the history, getting there is always difficult. budgets are always difficult. i went through this just last

year. the fact of the matter is, we have never seen the debt ceiling used in this fashion where the notion was, you know what, we may default unless we get 100% of what we want. that has not happened. now, as i indicated before, i am happy to have a conversation about how we reduce our deficit further. the american people are also concerned about how we grow our economy, how we put people back to work how we finance our workers getting properly trained and our schools are giving the

education they need. what you have never seen is the notion that has been presented so far, at least, by the republicans that deficit reduction will only count spending cuts. that we will raise the debt ceiling dollar for dollar on spending cuts. there are a whole set of rules that have been established that are impossible to be without doing severe damage to the economy. what we are not going to do is put ourselves in a position where in order to pay for spending that we have already incurred, that our two options will either be profoundly hurt the economy and hurt middle-class families and hurt seniors and her kids who are trying to go to college or

alternatively we will blow up the economy. we are not going to do that. [inaudible question] >> they will have to send me something that is sensible. we shouldn't be doing this on a123 month timeframe. why would we do that? this is america. i do not think anyone would consider my position unreasonable here. [inaudible question] >> major, i am happy to have a conversation about how we reduce our deficit. i will not have a monthly or

every three months conversation about whether or not we pay our bills. that in and of itself, does severe damage. even the threat of default hurts our economy. it is hurting our economy as we speak. we just had an entire campaign. the american people agreed with me, by the way, that we should reduce our deficits in a balanced way. despite that conversation, and despite the election results, the position that has been taken on the part of some house republicans is that, no, we have to do it our way. if we do not, we simply will not pay america's bills.

that cannot be a position that is sustainable over time. it is not one that is good for the economy now. even if it was on the other side. democrats do not like voting for the debt ceiling when a republican is president. but you never saw the situation in which democrats suggested somehow that we would go ahead and the fall if we did not get 100% of our way. that is just not how it is supposed to work. >> thank you, mr. president. on the issue of guns, given how difficult it would be to get any gun-control measure pass through this congress, what are you willing or able to do using the powers of your presidency to act without congress and i would also like to know, what do you make of these long lines we are

seeing at gun shows all around the country? >> well, my understanding, as the vice president will provide a range of steps that we can take to reduce gun violence. some of them will require legislation, some of them i can acquire through executive action. i will be reviewing those today. i will speak in more detail about what we will propose later in the week. i am confident that there are some steps that we can take that do not require legislation and that are within my authority as president. were you get a step that has the opportunity to reduce the possibility of gun violence. i want to go ahead and take it. [inaudible question] >> i think, for example, how we are gathering data, for example.

the guns they'll fall into the hands of criminals and how we track that. there may be more steps that we can take administratively. as far as people lining up in purchasing more guns, i think that we have seen, for some time now, that those that oppose any common sense gun control or gun safety measures have a pretty effective way of jumping up and fear on the part of gun owners that somehow the federal government is about to take all of your guns away. there is probably an economic element to that. it obviously is good for business. i think that those of us who look at this problem have

repeatedly said that responsible gun owners, people who have a gun for protection, for hunting, for sportsmanship, they do not have anything to worry about. the issue is, are there some sensible steps that we can take to make sure that somebody, like the individual in newtown, cannot walk into a school in gun down a bunch of children. in a shockingly rapid fashion. surely, we can do something about that. part of the challenge that we confront is even the slightest hint of some sensible responsible legislation in this

area fans this notion that somehow here it comes. everybody's guts will be taken away. it is unfortunate, and if you look at over the four years of the administration, we are trying to tighten up some of the laws that are already in the books. it would be pretty hard to argue that somehow gun owners have had their rights infringed. as i said, it is a fear by those that are worried about the possibility of many legislation giving out there.

>> last year you said that you would not extend any of the bush tax cuts for the wealthy and you did. as you say now that you are not going to negotiate on the debt ceiling this year, why should house republicans take that seriously and say that if we get to the one minute to midnight scenario that you will not back down? >> first of all, let's take the example of this year and the fiscal cliff. i did not say that i would not have any conversations at all about extending the bush tax cuts. what i said we will not extend bush tax cuts for the wealthy and we did not. you can argue that during the campaign i said that i set the criteria for wealthy at $250,000 we ended up being not 400,000.

the fact is, millionaires and billionaires are paying significantly more taxes just as i said. i was wanting to make sure that the middle-class taxes were not going to go up. the difference between this year and 2011 is that we have already made one point -- $2 trillion in cuts. at the time, i indicated that there were cuts that we could sensibly make that would not damage our economy, would not impede growth, i said at the time we should. up with revenue in order to have an overall balanced package. my own budget reflected cuts. my own budget reflected cuts that needed to be made. we have made those cuts.

now, the challenge going forward is that we have now made some big cuts. if we are going to do further deficit reduction, the only way to do it is in a balanced and responsible way. the alternative is for us to go ahead and cut commitments that we have made on things like medicare or social security or medicaid and for us to fundamentally change commitments that we have made to make sure that the seniors do not go into poverty or that children who are disabled are properly cared for. for us to change that contract that we have made with the american people. rather than look at options like closing loopholes for

corporations that they do not need. that points to a long-term trend in which we have fundamentally, i think, on her mind what people expect out of this government which is that parties sit down, they negotiate, they compromise, but they also reflect the will of the american people. another way of putting it is we have to break the habit. now, it is as good of a time as any. if we continue down this path, then there is really no stopping the principal. even in divided government, even

where we have a democratic president and a democratic senate, they could simply say, every two months, every six months we will have more and more change in the economy of ways that we prefer despite strong objections of americans all across the country where we will have a mayor cannot pay bills. that is no way for us to do business. i would make the same argument if i was a republican president and a republican senate and you had a handful of democrats who were suggesting that we hijack the process and make sure that either we get our way 100% of the time or otherwise, you know, we will default on america's obligations. [inaudible question] no, no, look, what i have said

is i am happy to have a conversation about deficit reduction. this is pretty straightforward. either congress pays its bills or it does not. they want to keep this responsibility. if john boehner and mitch mcconnell think that they can come up with a plan that somehow meets their criteria be that they have set for why, when they will raise the debt ceiling, they are free to go ahead and try, but the proposals that they have put forward in order to accomplish that, only by cutting spending means cuts to things like that or care and education that the american people profoundly need. they think they can get that through congress. i think, that a better way of

doing this is to go ahead and pay our bills. that is a conversation i am happy to have. >> thank you, sir. you have spoken extensively about the debt ceiling debate, some republicans have said they are willing to allow a government shutdown to take place rather than put off deep spending cuts, are you prepared for that if you disagree with the spending cut proposals to put forward and who do you think the american people will blame if that came to pass? >> well, ultimately, congress makes the decisions about whether or not we spend money and whether or not we keep this government open. if the republicans in congress have made a decision that they

want to shut down the government in order to get their way, then, they have the votes at least in the house of representatives to do that, i think that would be a mistake. i think it would be profoundly damaging to our economy, i think it would actually add to our deficit because it would impede growth. i think it is shortsighted, but they are elected representatives and folks put them into those positions and they will have to make a decision about that. i suspect that the american people will blame all of washington for not being able to get its act together. the larger issue here has to do with what is it that we are trying to accomplish. are we trying to reduce the deficit, because if we are trying to reduce the deficit, then, we can shape a buy --

bipartisan position. we are spending more than we taken and if if that is the case, then there is a way of balancing that up so that we have taken more money, increased revenue, and we reduce spending. there is a recipe for getting that done. the conversation that i had with speaker banner before the end of the year, we came pretty close. a few hundred billion dollars separating and stretch that through a tenure. , that is not a whole lot. what seems a lot more compelling is more than simply deficit reduction. they have a particular vision of what government should and should not do. they are suspicious about government commitments, for example, to make sure that seniors have decent healthcare, as they get older, they have

suspicions about social security, they have suspicions about whether government should make sure that kids in poverty are getting enough to eat or whether we should be spending money on medical research. they have a particular view of what government should do and be. that was rejected by the american people when it was debated during the presidential campaign. i think every pull that is out there indicates that the american people actually think our commitment to medicare and education is really important. that is something we should look at as a last resort in terms of reducing the deficit and it makes more sense for us to close corporate loopholes before we go to putting a bigger burden on

students and seniors. if the house republicans disagree with that, and they want to shut down the government to see if they can get their way on it, that is their prerogative, that is how the system is set up. it will damage our economy. the government is a big part of this economy. it is interesting, a lot of times you people who recognize that when it comes to defense spending. when it comes to that defense contract in their district, they think, wow, this is a pretty important part. let's just take sure we are not spending on those other folks. [inaudible question] >> you know, look, my hope is

that common sense prevails. that is always my preference. i think that would be the preference of the american people and i think it would be good for the economy, let me just repeat, if the issue is deficit reduction, getting our deficits sustainable over ttme getting our debt in a sustainable place, then democrats and republicans will have a partner with me. we can achieve that and we can achieve it fairly quickly, we know what the numbers are and we know what needs to be done. we know what a balanced approach would take. there has probably been more pain and drama and getting there than we needed. finishing the job should not be that difficult.

if everyone comes to the conversation with an open mind and if we recognize that there are some things, like not paying our bills should be out. i will take one last question. >> thank you, mr. president, i would like to ask you now that you have reached the end of your first term, starting her second, about a couple of criticisms. the long-standing one is a truism of sorts that you and your staff are too insular, that you do not socialize enough and the second is that your team taking shape is not diverse as it could be or even was in terms of getting additional voices, gender, race, ethnic diversity. i would like you to address both of those. >> sure. let me take the second one first. i am very proud that in the first four years, we had as

diverse if not war diverse a white house and cabinet than any in history, i intend to continue that. it turns out that when you look for the very best people, given the incredible diversity of this country, you will end up with a diverse staff and a diverse team. that diversity helps to create more effective policymaking and better decision-making for me because it brings different perspectives to the table. if you think about my first four years, the person who probably have the most influence on my four policy was a woman. the people who were in charge of moving forward my most important domestic initiative, healthcare, where women. the person in charge of our homeland security was a woman.

my two appointments to the spring court were women and 50% of my white house staff were women, i think people should expect that that record will be built upon. what i have made, for appointment so far, one woman, admittedly a high-profile woman, is leaving the administration, has already left the administration and i have made a replacement. i would suggest, wait until you have seen all of my appointments, who is in the white house staff and who is in my cabinet before they rush to judgment. [inaudible question] >> i guess what i am saying, jackie, until you have seen what my overall team looks like, it is premature to assume that somehow we are going backwards.

we are not going backwards, we are going forward. with respect to this truism about me not socializing and often patting folks on the back and all of that stuff, most people who know me know i am a pretty friendly guy. i like a good party. the truth is, when i was in the senate, i have great relationships over there up until the point that i became president, this was not an accusation that you heard very frequently. i think that really what has gone on in terms of some of the prowess here in washington just have to do with some very stark differences in terms of policy. some very sharp differences in

terms of where we stand on issues if you think about myself and speaker boehner, i like speaker boehner personally. when we went out and played golf, we had a great time, but that did not get a deal done in 2011. when i am over here at the congressional picnic and folks are coming up and taking pictures with their family, i promise you, michele and i are very nice to them and we have a wonderful time, but it does not prevent them from going onto the floor of the house and blasting me for being a big spending socialist. the reason that, in many cases, congress vote the way they do or talks the way they talk or takes positions in negotiations that they take, it does not have to

do with me, it has to do with the imperatives that they feel in terms of their own politics. they are worried about their district. they are worried about what is going on back home. i think there are a lot of republicans at this point that feel that given how much energy has been devoted and some of the media that is preferred by republican constituents is to gemini's me that it does not look good socializing with me. charlie crist, down in florida, testifies to that. i think a lot of folks say, well, if we look like we are being too cooperative or too chummy with the president, that may cause us problems. that may be an excuse for us to get a challenge from somebody in a primary. that tends to be the challenge.

i promise you, we invite folks from washington and congress over here all the time. i enjoy their company. sometimes they do not choose to, not has to do with the fact that, i think, they do not consider the optics useful for them politically. ultimately, the way that we will get stuff done, personal relationships are important and obviously i can always do a better job and the nice thing is now that my girls are getting older they do not want to spend that much time with me anyway. i will be calling around looking for someone to play cards with me or something. i am getting kind of lonely in this big house. maybe a whole bunch of members of the house republican caucus want to come over and socialize more. my suspicion is getting the issues resolved that we just talked about. the big stuff, whether or not we get sensible laws passed to prevent gun violence.

whether or not america is paying its bills, whether or not we get immigration reform done all of that will be determined largely by where the respective parties stand on policy and maybe most importantly, the attitude of the american people. the american people feel strongly about these issues and may push hard and they reward or do not reward members of congress with their votes, if they reject uncompromising positions or sharp partisanship or always looking out for the next election and they reward folks who are trying to find common ground, then, i think you will see behavior and congress change. that will be true whether i am the life of the party or a stick in the mud. all right.

thank you very much, everybody. >> president obama holding his last news conference of his first term. this was a rare last-minute news conference. he began by offering a statement about the debt ceiling debate. he is truly coming from a point of no good negotiations saying he is open to having discussions . the nations money basically going to be running out of time between february 15 and march 1. he is wanting to talk to republicans, but at the same time saying it is up to them to come to him with some type of deal, for anyone out there hoping that they will get this bad feeling out of the way rather easily, the hope does not go up. let's bring in rich edson. rich: that is right, dennis,

this is just starting here. president obama say back congress orders me to spend. they should raise the debt ceiling allowed me to pay those bills. also, the president signed those bills into law. he says, look, we need to take this debt ceiling, put it aside, rape the debt ceiling and then we can argue over spending. he says we have done about half the deficit reduction that we can do over the last couple of years. we have been debating debt and deficit over the last couple of years. the american people decided this in the election and they agree with me. logan ayres and billionaires are paying significantly more taxes thanks to that fiscal cliff feel that he just signed into law. a note on gun control expected to be delivered to the president tomorrow. he says he will have a proposal later this week.

the executive order action and some changes that would have to make it through congress. this is mostly about gun control. back to you. dennis: thank you. cheryl: he also addressed the lack of women in his new cabinet appointment. that was interesting as well. stocks every 15 minutes. during the president news conference, big news crossing on jpmorgan. nicole: that is right. here you go. that is an intraday chart. in our day seems be finished. take it down. the stock is down about .5%. let's take a look at jpmorgan. looking closely at jpmorgan.

you have the office controller looking into what happened. they are working with enforcement. they will hit jpmorgan with enforcement action. these actions may be taken as early as today. the actions will target risk management, money laundering control, the same firm, basically this controller of the currency on risk management that was tied to the london wales trading loss, the question is they are continuing to look in to this. it cost the company over $6 billion last year. they are still there looking into whether traits have been intentionally mismarked. whether there was a cover-up. while it seems like it is over, it is not over yet. you could sse enforcement actions being tasted as early as

today on this. cheryl: thank you. dennis: let's talk apple. trading below $500 this morning for the first time in 11 months. they worry about iphone5 demand. is now the time to buy? >> >> we have had, i think 15-20% corrections and apple in the past five years. it has been a great opportunity to buy stock. i tend to not look so short-term. revenues are up sixfold. earnings are up. earnings grew 60%. the s&p trades at 14.75 times. apple will go 15-20% and trade at ten times. you say, is apple below average?

they have inferior products. they have inferior growth prospects. the answer to all of these are null. the s&p traded. it is an opportunity. dennis: the stock in september was that $700 nobody was taking thereby recommendations often. it fell to the $500 level. on the price-earnings basis, it is a very cheap stock. maybe it has lost some of its buzz. >> yes. i think that is true. they were actually accelerating growth. now we are at the point where they are doing $50 billion of revenue and a quarter. five years ago, they did $24 billion the entire year. they are starting to get the law of large numbers.

it is still a tremendous growth relative to a large-cap company. apple was still a top-performing large capital stock. a lot of people have tax adjusted. dennis: when the stock at that $500 range, it hits this nice support level. it is a 50% retracement from the highest 700 down to a recent low of 310 or something.

if it is closing below $500 on one of these days, does that stock suddenly psychologically have to fall down to 450 before it finds new support? >> clearly, psychology plays a large part. i look at it over the next five years. when we did our first college survey nine years ago, apple had something like a 5% share. these college kids that we survey every year, they are tomorrow's cios. i think there is still a lot of opportunity.

dennis: i guarantee it will happen within a week or two before i just bought the most recent one before was outdated. thank you very much for being with us today. cheryl: overall markets certainly keeping an eye on shares of apple. take a look at the s&p. reaching a five-year high. where is the s&p headed? last time you are on, i remember you saying that we just heard from the president. usually that first year after an election is negative. why this year all of a sudden are you changing your tune about the dynamics of the market? >> history is a great guide. i usually start off with history to get a great idea with what

may happen going forward. we just hit an all year high in the s&p 500, yet we are still in the water of a bear market perspective. what happened to the market 12 month later. not a lot of observations, only four of them, you have to take the numbers with a grain of salt. cheryl: you are more bullish because of the numbers you see and history, but, at the same time, there are a lot of unknowns. we are already worried about what that will do to confidence.

there is worry that consumer spending will drastically pull back because of the payroll tax holiday. all of that could be a negative and companies forecast which could still be a negative for the company's first-quarter earnings season. >> i think that is why we are not overly bullish on 2013. we still think that the opportunities are out there. we have high single-digit earnings prospects. at the same time, we have to be reminded that all the negative things we are talking about, wall street has been aware of for a long time. it may respond subsequently, but the response is less and less with each bounce. cheryl: we are at 1468 right now. really quick, telecom. dennis was talking about apple. >> the telecom sector does have good earnings growth. they have not been engaged in a lot of activity.

as a result they have not caught in a sense, shot themselves in the foot in terms of overpaying acquisitions. cheryl: thank you so much for being here. great to have your opinion. dennis: jamie dimon bonus is about to get whacked after that big trading loss. we have not had. cheryl: gun store shelves cleared. you heard the president today talking about that. we are going to be live in los angeles coming up. dennis: first, let's take a look at the ten year treasury. the local

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dennis: train wreck alert. the stock market rally could be stopped in its tracks. austrian ought to be worried because debt ceiling negotiation is about to blow apart. president obama warned about that. >> if we combine a balanced package of savings from spending on healthcare and revenues from closing loopholes, we can solve the deficit issue without sacrificing our investment and things like education that will help us grow. turns out the american people agree with me.

dennis: we are joined by greg valliere. thank you for being with us. the president did not sound terribly accommodating and ready to compromise. >> nobody is. that is the problem. boehner does not want to negotiate anymore. the republicans in the house are just itching for a fight. i know wall street does not want to hear it. they have been told before. this could get ugly. dennis: you think there is a 60% chance that we end up with some form of the questioner. could that be a good thing? >> it could be unless you all defense stocks. then, no, it is not a good story. yes, it will save some money. it will be messy. dennis: we are borrowing 40% right now.

it does not require us to make social security payments. could you elaborate on that. >> it gets very politically dicey. i do not know what the correct ruling is ominous. i think we will have to start talking about prioritizing and the next few weeks. dennis: we have all kinds of stuff that federal government owns that would be easy. >> guys are apparently, allegedly starting to think about this, selling gold, u.s. assets, having a bake sale. i do not think we are quite

there yet. dennis: that is more than enough, i have read, to meet our debt obligations. we do not instantly default if we do not raise this debt ceiling in time, do we? >> no. what about paying the troops, medicare benefits, social security benefits. would you prioritize, somebody is going to get hurt. dennis: thank you very much, greg valliere. thank you for being with us. >> you bet. cheryl: we have breaking news on jpmorgan. new reports that jpmorgan chase ceo jamie dimon may take a hit. joining me now is former treasury department adviser for the clinton and obama

administration. i want to start with the sec. >> i think it is an important development. it really shows that risk management will be really important for things going forward. the fact that the enforcement action is coming, the board is talking about pinging jamie dimon bonus. they are starting to think or probably about strategy of the firm and it is not just about quarterly earnings. cheryl: he is the highest-paid ceo out there. it is the board's call whether or not to release the london whale report. this hurts him financially. >> yes. what concerns me a little bit about jpmorgan is jamie dimon is not just ceo, he is also chairman of the board. we like to have the tube positions split. when there are decisions like

this, you want the board to be able to say this may make the ceo look back, but we are going to do it in the issue of transparency. cheryl: and it will mean more regulation, more accountability, they will have to have more reserves. a little nervous now, susan, of what 2013 will bring. there are still clouds on the horizon. there is new regulation. it makes it very difficult to make money on the traditional core businesses of thinking. there are still also really interesting opportunities. one of them, i would say, is around technology. cheryl: real quick, before i let you go, jack glue is going to be the new treasury secretary. what do you think of the nomination? >> i think he will be great. cheryl: interesting. great. thank you.

we will follow-up with you again. thank you very much. dennis: when we come back, you will not believe who is buying harry winston very prestige jewelry brand. ♪

♪ >> you may not believe it, but the biggest maker of swiss watchers, swatch group, buying harry wins phon for nearly a billion dollars. take with that what you will. >> way out of their pay scale. investors dishing bonds for stocks? how to play it. that's next. >> plus, an offer that you probably cannot refuse. louisiana governor proposing a zero corporate tax rate and personal income tax rate. speaking with the man advising the governor on that plan coming up next.

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